104. The price of capital is $12 per machine-hour and the price of labor is $3 per hour. Below are production schedules for a firm showing the possible combinations of capital and labor that will produce 100 units of output. Which combination will this cost-minimizing firm choose? A) Labor: 20 B) Labor: 10 C) Labor: 5 D) Labor: 4 A. Choice A B. Choice B C. Choice C D. Choice D Capital: 5 Capital: 10 Capital: 20 Capital: 25 MPL: 5 MPL: 10 MPL: 20 MPL: 25 MPK: 20 MPK: 10 MPK: 5 MPK: 4

104. The price of capital is $12 per machine-hour and the price of labor is $3 per hour. Below are production schedules for a firm showing the possible combinations of capital and labor that will produce 100 units of output. Which combination will this cost-minimizing firm choose? A) Labor: 20 B) Labor: 10 C) Labor: 5 D) Labor: 4 A. Choice A B. Choice B C. Choice C D. Choice D Capital: 5 Capital: 10 Capital: 20 Capital: 25 MPL: 5 MPL: 10 MPL: 20 MPL: 25 MPK: 20 MPK: 10 MPK: 5 MPK: 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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